New Government’s Plans Influence Commercial Real Estate Decisions

The plans of the new government will heavily influence commercial real estate decisions, according to JLL Philippines. The property consultancy firm shared an overview of the office market in the recently concluded business networking event Lamudi Link, held in partnership with developer Arthaland Corporation.

The country’s current political environment is among the key factors shaping the state of the real estate market today. 

JLL Philippines noted that while it may have prompted the market’s short-term subdued performance, it can “provide legs for future growth.” The insight was mentioned in the recently concluded business networking night Lamudi Link.

The consultancy firm reported that companies are in a wait-and-see mode on office leasing activity, as the new government irons out its plans.

Snapshot of the Office Market

Along with current trends, Antonio Sabarre, Senior Director of Office Leasing Advisory at JLL, shared an overview of the office market.

In the first quarter of 2022, about 176,000 square meters of office space were completed, delivered by office buildings in Makati and Taguig, including the Savya Financial Center North Tower in Arca South.

There will be 15 more buildings to be finished this year, adding approximately 556,200 square meters to the supply. JLL projects 732,100 square meters of office space to be available by the end of 2022. These units are mostly coming from Makati, Taguig, and Quezon City.

In terms of demand, outsourcing and offshore firms are primarily driving the commercial property interest. 

JLL observed a significant increase in leasing demand from the first quarter of 2021 to the first quarter of 2022, which is supported by “overall improved outlook and opening of the country’s borders.” 

The property consultancy firm bared other key themes influencing the property industry during the networking night. Among those mentioned are the emphasis on sustainability and technology adoption.

Emphasis on Sustainability

The in-person event was held in Savya Financial Center, a sustainability-certified office building in Taguig. Lamudi partnered with the property’s developer Arthaland Corporation.

“Arthaland really walks the talk in terms of sustainability. Our tagline says it all, ‘Building Sustainable Legacies.’ We are the only real estate developer in the Philippines with a portfolio that is 100 percent certified sustainable. This is confirmed by the awards that we get,” Anna Marco, Director of the Office-Commercial Division at Arthaland, said.

All the company’s developments are certified by not just local but international agencies: Leadership in Energy and Environmental Design (LEED), WELL Building Standard, Building for Ecologically Responsive Design Excellence (BERDE), and EDGE. 

Arthaland Century Pacific Tower, the company’s first office building development, is a landmark development even on the global scene, as it received the world’s first net-zero award under the World Bank Group’s IFC EDGE.

Marco said that developing sustainable properties may cost more, but in the long run, operating costs are lower. She added that green features increase property value, offer higher rental income potential, and improve occupancy rates. 

Other benefits include being the ideal and preferred choice for international and local locators and better tenant satisfaction as living and working conditions improve.

Arthaland is the first Asian property developer signatory in the Net Zero Carbon Buildings Commitment to the World Green Building Council.

Tech in the Property Sector

As JLL mentioned, the use of technology is likewise influencing the real estate industry. Lamudi especially observed this in the aspect of online property search. 

Anurag Verma, Lamudi’s new Managing Director and CEO, reported that the average pageviews on Lamudi from the fourth quarter of 2021 to the first quarter of 2022 increased by 12 percent. The average leads grew by 16 percent in the same period. Meanwhile, the average visits were up by 20 percent.

“The overall real estate industry is picking up. There’s been a lot of activity in the market. That translates to the platform,” Verma said. 

Vertical residences, namely condos and apartments, registered the highest spike in demand, as evidenced by the growth in the number of leads garnered from the fourth quarter of 2021 to the first quarter of 2022.

The return-to-office mandate may have fueled the interest in these types of properties, Verma noted. He added that more have been keen on living near where they work amid the pandemic.

The top amenities people look for in the first quarter include connectivity services, namely broadband internet and WiFi, and security features, such as an alarm system, 24-hour security, intercom, and CCTV. Tech-enabled, secure properties get attention post-pandemic.

To attend Lamudi’s next business networking event, register here: https://bit.ly/RegisterLamudiLink.

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